Does such a mortgage exist for my circumstances?

newbuyer1

Hi,

I am wondering if anyone can tell me if a mortgage exists that will allow me to do the following.

I am looking to purchase a new build off-plan flat for £350K that will be complete by next May / June. The developer needs a 10% (£35K) deposit in November / December for me to secure the property. I have £15K but will not be able to raise the additional £20K in time.

Is there a provider that will allow me to secure a mortgage for £335K but release £20K of that now to pay the deposit? Ideally I would look to roll this amount into the mortgage for 6 months and let the interest accrue and then pay it off as part of the mortgage. Alternatively I could afford to pay something towards this portion of the loan amount until the flat is built.

I already have a mortgage AIP for £315K - from when I thought I may have the full-required £35K - so I don't think borrowing this amount will be a problem.

I earn £72K a year with a £10K - 15K bonus and my salary will increase to £82K by the time I come to start paying the mortgage next year. I have a £20K personal loan and £5000 outstanding on my credit cards and a v. good credit record according to Experian / Equifax / MyCallcredit.

Does a product exist for what I am looking to do? Any suggestions around the 10% requirement? - I have spoken to the developer and at present there is no flexibility on this.

Thanks

MarkyMarkD

Given your income, can't you simply get an unsecured loan for the £20k you require and then repay that once your mortgage completes?

MortgageMamma

I dont think any lenders will advance you secured funds on the property before its built, there are self build mortgages but as you are not building it yourself I doubt they would do that for you.

I would recommend getting a short term loan and funding it that way, or renegging on the deposit with the builders.